Hindustan Coca-Cola Beverages Pvt Ltd, the bottling arm of Coca-Cola recently wrote to UP chief secretary Alok Ranjan saying that "inordinate delays in receiving of the no objection certificate was causing delay in expansion of capacity leading to financial losses".

The company also informed Ranjan that following this, it had decided not to pursue the expansion at Mehdiganj plant near Varanasi.

A state government official said that the state had virtually no role in the matter as the Central Ground Water Authority had not given Coca Cola regulatory clearances to draw more ground water.

"In such a situation, we would like to hold on to the soft drink major but have a limited or no role at all," the official said.

Besides, he said the Coca Cola should discuss their grievance with the central government.

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